I just need the answer quick. No need explanation 1. In a responsive (pull) syst
ID: 1163101 • Letter: I
Question
I just need the answer quick. No need explanation
1. In a responsive (pull) system production is only triggered by a customer demand.
True
False
2. Typically, reducing total shipping cost also reduces total inventory related costs.
True
False
3. Which of the following statements are TRUE:
(I) Economies of scale involves reducing average cost by increasing production quantity whereas economies of scope targets lower average cost by increasing the type of products produced.
(II) Economies of scale provides improved customization in a product or service.
(III) Economies of scope provides improved convenience in product assortment and choice.
A.
I and III
B.
only II
C.
II and III
D.
only I
A.
I and III
B.
only II
C.
II and III
D.
only I
Explanation / Answer
1. It is true that in a responsive (pull) system production is only triggered by a customer demand. This is because here production and distribution demand is driven by true customer demand.
2. It is true that typically, reducing total shipping cost also reduces total inventory related costs. This is because reduced shipping costs reduce total carrying costs.
3. Option II and III are true. So the correct option is C.